International division of labor in USA
The international division of labor, or DIT, is an extension of the work load
vision applied to international trade. It refers to the fact that countries are
specialized to produce certain financial assets: they do not all work on the
same products and, thus, exchange among themselves their production.
In free trade, international specialization leads to the convergence of
the remuneration of the factors of production, according to the theorem
equalization of factor prices, resulting from the Huckster- Ohlin- Samuelson
model.
Traditional DIT
The traditional attributes DIT developed the manufacture of manufactured
goods and services countries and poor countries, many developing countries ,
the supply of commodities in general ( agricultural products, raw materials).
But gradually with the development of techniques, but also countries,
international division of labor becomes. And some southern countries began to
produce the current manufactured goods (textiles, for example).
New international division of labor
Sometimes called "new international division of labor» to describe
the current specialization of countries: the newly industrialized countries,
especially Asian, today produce manufactured products, including high-end products.
Developed countries mainly manufacture technology products and services whose
production requires high qualifications. The poorest countries are confined to
primary products with low added value.
Until the 1970s, international trade relations were structured by what is
now called the "old international division of labor." As we have
noted, this division has been established in the nineteenth century following
the Riparian analysis ( Ricardo ), corresponding to an exchange of primary
products from developing countries against manufactured goods exported by
countries developed .
The first wave of the NPI was dominated by four countries in Southeast
Asia (the four dragons): Hong Kong, South labored, Singapore and Taiwan, as
well as two Latin American countries: Brazil and Mexico.
Then in 1980 came a second wave consisted mainly of Asian countries like
Thailand, Malaysia, Indonesia, Philippines and Vietnam (Asian Tigers)
Because of their skilled labor and cheap, these countries were used by
multinational corporations as bases for subcontracting. They were first engaged
in specific industrial sectors, such as optical instruments, watches, toys and
machine tools. Direct investment by multinationals in these countries has, on
the one hand, the transfer of technology, and the other, the creation of new
wealth which in turn funded new projects.
Today , countries such as South Korea and Brazil, exporting cars,
missiles, computers ... Similarly, a small country like Taiwan (23 million) is
the third largest exporter of electronic products, the fourteenth trading power
.
International decomposition of the production process (DIPP)
The revolution of the last fifty years has come from the lowering of
tariffs and the substantial reduction in transport costs. What counts now is
the ability to decompose the manufacturing. The product is more complex and it
comprises components and subassemblies which can be produced independently of
each other. A car, for example, has more than 5000 rooms 1. These components are
gradually combined into subsets that are associated during final assembly. This
product decomposition then allows the manufacture of the various parts in
different countries according to their comparative advantages. The production
will be broken internationally hence the name "International decomposition
of the production process. »
This phenomenon has given rise to international trade in parts and
components and re-exports of finished products after installation. These
exchanges are carried out between subsidiaries of multinational firms or
through subcontracting or inter-firm agreements. This type of trade is
sometimes so important that some countries, including the United States, have
created a special statistical classification to evaluate.